AVAN: A Speculation on Anthrax

"In this market of slowly eroding prices, we can only try to take solace
in the fact that we think most the stocks we follow represent tremendous values
at current price levels," says John McCamant, editor of
The Medical Technology Stock Letter
. "Thus, we recommend waiting out all of the negativity
for what are likely going to be excellent long-term returns." Among his most
speculative picks is this play on Anthrax.

"Avant Immunotherapeutics (AVAN
NASDAQ) reported that they have been awarded a
government contract for the development of an oral vaccine, which utilizes the
cholera bacterium, that will protect troops against both anthrax and the plague. It
will also protect against cholera. AVAN will get $2.8 million up front, and up to
$8 million over the next two years. While the vaccine is years away, if it
ends up working, it could be very big for AVAN, because current
vaccines are injectables. Furthermore, the military's current anthrax vaccine
involves six shots over 18 months, and the multiple-injection plague vaccine is no
longer being manufactured. Another positive that arises out of this deal is that
it will give AVAN enough cash so that they will not have to sell their stock to
raise more money. We continue to hold this stock in our model portfolio. The
stock is a buy up to $1.50 a share. Our long-term price target for the stock is
a move to $8."